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Dollar Little Changed Ahead of FOMC Meeting Results
['Rich Asplund', 'July', 'Min Read']
Yahoo Finance
The dollar recovered from overnight losses and is little changed after crude oil prices surged more than +6% when President Trump said the US will "hit Iran hard" after a recent attack from Iran that targeted a US base in Jordan.
The jump in crude prices raises inflation expectations and could prompt the Fed to tighten monetary policy, a supportive factor for the dollar.
Movement in the dollar is limited ahead of the conclusion of the 2-day FOMC meeting later today when policymakers are expected to keep interest rates unchanged.
Crude oil prices jumped today after the Islamic Revolutionary Guard Corps (IRGC) said it targeted a US airbase and command center in Jordan with ballistic missiles.
The markets are discounting a 34% probability of a +25 bp rate hike at the conclusion of today's FOMC meeting.